Australia's Superannuation System: Problems And Solutions

Facing the problem of population ageing, many countries are striving to reform their retirement income policies. Australia's retirement income system, known as the three-pillar approach, has come increasingly to be viewed as a model for many other countries. Australia's superannuation system, which constitutes two of the pillars of the retirement income policy, assists Australians to achieve higher retirement incomes than from age pension alone. After over a century's development, the current superannuation system is relatively mature. However, there still exist some problems in such areas as taxation and fund regulation, which in turn restrain the effectiveness of the system. Heating debates have emerged recently on how to address these problems and improve the system, and a number of reform proposals have been put forward.This thesis will begin with a chronological review of Australia's superannuation system, followed by an observation of the latest two measures for settlement within the system. Then a comprehensive and systematic analysis will be made on problems in the system, ranging from taxation, contributions, fund management and operation. On the basis of foregoing analysis, the focus will be shifted to how to improve the present superannuation system. A series of reform proposals put forth by Government agencies will be examined.The thesis is composed of five chapters with the first reviewing the literature, significance, focus, methodology, and objectives of the thesis. The second chapter deals with Australia's superannuation system, including its history and major characteristics of the system. Chapter three, the major part of the thesis, explores the implementation of measures designed at the problems in the system against criteria of adequacy, equity, simplicity, safety and integration. The fourth chapter examines some reform proposals put forward by Government agencies, with the presentation of the author's comments on these proposals. The last chapter draws some conclusions, laying emphasis on the urgent need for reform in the superannuation system.